The camera features on the new iPad seem neat, but the main reason I would upgrade is for a sharp new high-resolution display.
That being said, it seems unlikely that I will be upgrading. Although some more RAM, coupled with a thin and lighter device would be tempting.
As far as further software updates, I really hope Apple implements some form of user accounts. Perhaps tied in with this front camera to recognize who is picking it up. My wife and I share the iPad, and she likes different games and has different email accounts than I do, as well as iBooks and GameCenter accounts. Some further separation would be welcome.